NEW YORK (TheStreet) -- Shares of Target Corp (TGT) were gaining, higher by 1.02% to $81.27 in early market trading Tuesday, one day after the big box retailer agreed to sell its pharmacy and clinic businesses to CVS Health (CVS) for roughly $1.9 billion.
Last night, Target CEO Brian Cornell and CVS Health president and CEO Larry Merlo appeared on Jim Cramer's Mad Money show on CNBC.
Cornell said the deal is all about growth for the company, and will strengthen its positioning in the wellness space.
He added that the deal will drive traffic to Target stores and return cash to shareholders. The deal would also increase Target's focus on signature product categories.
CVS will buy more than 1,660 Target pharmacies in 47 states.
The two companies said the pharmacies and clinics will be run through a store-within-a-store format, and will remain in Target stores under the CVS brand.
Minneapolis-based Target is a retailer that provides differentiated merchandise at discounted prices.
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